January 2 Eight former
MQM activists are arrested following firing in Landhi, Malir and Korangi.
The suspects were identified by the MQM leadership itself, authorities
in Karachi allege, a pointer that the party may be heading towards a split.
A number of "commandos" have deserted the MQM in the last few
months, either leaving the country or going underground to avoid retaliation.
Rumours are rife that leading MQM activists Afaq Ahmed, Aamir Khan and
Badar Iqbal are planning to set up an alternate party.

Gulf War

US starts Gulf War on January 16 with support from allied
countries including Pakistan. The Iraqi President Saddam Hussain rejects
six-point peace plan proposed by PM Nawaz Sharif during his visit to Muslim
countries while COAS Aslam Beg takes divergent view from that of the government.

Open Sesame

February 7 The Nawaz Sharif administration announces
a ground breaking 25-point economic package which, among other measures,
eases the country's stringent foreign exchange control rules. At the same
time, foreigners are allowed to repatriate profits as well as principal
and to invest in the local stock market.

The New Army Chief

August 16 General Asif Nawaz Janjua replaces Mirza
Aslam Beg as Chief of Army Staff General Asif Nawaz Janjua replaces Mirza
Aslam Beg as Chief of Army Staff

Trading in terror

November 27 Veena Hayat, daughter of Sardar Shaukat
Hayat Khan and friend of the Zardaris and Bhuttos, is gang-raped by five
intruders. Her father holds the Sindh government, and particularly home
advisor Irfanullah Marwat, responsible for the crime. Marwat, the son-in-law
of the president who enjoys Sindh strongman Jam Sadiq Ali's full support,
is already notorious for turning the Karachi CIA into a personal army
said to be involved in kidnapping, extortion, torture and rape.

Boom boom

April 23 Following the economic reforms of February
7, business has been booming at the Karachi Stock Exchange. Today, turnover
peaked at 8.2 million shares while the KSE index climbed even further
to 1775. Suddenly, trhe KSE is no longer the domain of just seasoned brokers
and speculators. Public interest is growing by the day and the small investor
has also plunged into the fray. But is the boom sustainable?

Power, espionage and grand larceny

July 29 A New York grand jury indicts BCCI boss Agha Hasan
Abedi and top executive Swaleh Naqvi on several charges of fraud and grand
larceny, signalling the beginning of the end for the maverick bank. The
respected Agha Sahib of yore is transformed into "The Rasputin of
the East" and his bank is accused of criminal dealings ranging from
fraud to blackmailing, money laundering, espionage, gun-running and even
murder.

Dakoo raj

Despite the federal government's anti-dacoit operation
in interior Sindh, cases of kidnapping for ransom are increasing by the
day. Up to May 30, an estimated 1,294 persons have been kidnapped this
year. While the police blames "an unholy alliance between criminals
and policticans," sociologists point to the lack of opportunities
for educated young men who turn to crime as a last resort.

Best bowling

October 25 Aaqib Javed records the best bowling
performance in one-day cricket, taking 7-37 (including a hat-trick) against
India at Sharjah Aaqib Javed records the best bowling performance in one-day
cricket, taking 7-37 (including a hat-trick) against India at Sharjah